Sri Lanka tax cuts could cost Rs500bn: Minister Rambukwelle

ECONOMYNEXT – Sri Lanka’s tax cuts could cost around 500 to 550 billion rupees a year, but will boost economic growth and future tax revenues, State Minister for Investment Promotion Keheliya Rambukwelle said.

“According to our calculation we may lose about 550 billion rupees,” Minister Rambukwelle told reporters in Colombo.

Rambukwella said Sri Lanka’s tax collections were about one trillion rupees in 2014, with which they ran the economy, which was more than doubled by the last administration.

“Even if we lose 500 billion rupees, we will have 1.5 trillion rupees to manage the economy,” Rambukwelle said.

“We can control it. When Mahinda Rajapaksa took over the economy the GDP was 20 billion US dollars. We raised it to 80 billion in 10 years.

He said the government will grow the economy, bringing more investors to the country.

He said loss making state enterprises will be turned around. The finance ministry has said expenditures will also be cut.

Sri Lanka was targeting tax revenues of about 2.2 trillion in 2019, but revenues have slowed in the wake of monetary instability in 2018. (Colombo/Dec03/2019)